About Best Buy • Multinational Retailer with brick and mortar and online presence. • 1100 stores with over 180,000 employees World Wide. • Best Buy still holds 22% market share in the US.
What Best Buy Sells• Consumer Electronics• Home Office• Entertainment Software• Appliances
Services: Geek Squad • Computer maintenance and configuration. • Home Theater installation. • Car audio and Video Installation.
Target Market• Men and Woman of the middle class ages 16-35.• Parents with students in college ages 36-50.
Value Proposition Best Buy provides an assortment of high quality and reasonably priced electronics and accessories for consumer with expendable incomes and a desire for the newest innovations in the technology industry. Best Buy is also committed to delivering technology solutions that enable easy access to people, ideas, knowledge and entertainment. To do so Best Buy is committed to developing and implementing technology solutions to their consumers and communities
The Current Strategy• To become more profitable ,Best Buy is closing 50 “Big Box” stores and opening 100 Mobile Stores.• Omni-Channel Retailer
Strategy Continued • Provide many outlets for consumers to stay connected to the Best Buy Brand. Examples: Twelpforce, Community Forums, rating and reviews, geekblog, Best Buy You Tube Channel, and IDEAX. • Consumers can also connect via Facebook and Twitter. • Maintain an interactive Facebook page.
SWOT Analysis Strengths: Weakness: • Wide product selection in consumer • Customer service isn’t viewed highly electronics • Online product assortment doesn’t match up • Well-developed digital and social to In-store • Dual Branding and Acquisition Strategies • Offers Services like Geek Squad to assist costumers Opportunities: Threats: • Further investment internationally • Amazon’s lower prices online • New forms of social media ex. Instagram, • Larger stores department stores with such as Aurasma, Pinterest Walmart • Tablet-commerce • Internet downloading and streaming effects DVD and CD sales
Issues with Best Buy• Felt they were unstoppable after Circuit Citys demise.• Amazon Quickly taking market share.• Lots of overhead cost.• Best Buy is a showroom for many online retailers.• Facebook and Review sites plagued with complaints about customer service.
The New Strategy• Connect to consumers on a local basis.• Hire employees for handling Social Media in store.• Use Pinterest and Instagram tp further social media presence.• Make an Ipad and Tablet specific app.
The New Strategy in Store• Give employees Ipads that can access inventory, prices, product information , and POS use.• Implement Aurusma for the customer that wants to shop on their own. Products can be purchased with the app.
Cost For Implementation• Social Media employee: 100 pilot stores 1 employee per store $30,000x100=$3,000,000• Instagram & Pinterest would be ran by Best Buys Social Media Team at the corporate offices.• In store Ipad use:100 pilot stores with 10 Ipads each $399.99x10x100=$399,990• Ipad and Tablet App $12,000-$150,000
SWOT AnalysisNew Strategy SWOT AnalysisStrengths: Weakness: • Wide product selection in consumer • It takes lots of time and money to electronics implement strategies. • Making a big company feel small • Still have more overhead then online retailers. • Well-developed digital and social • Opens more outlets for consumers to • Social Marketing to Women complain. • High customer service ratings • Social media is constantly changing • Strong relationship buildingOpportunities: Threats: • Further integration of new social media • Amazon’s lower prices online • Make stores smaller, lessen overhead. More • Consumers could use all the info provided to Best Buy Mobile stores. still shop elsewhere. • Be more aggressive with pricing • Larger department stores such as Walmart • Price driven consumers
ReferencesBest Buy. (2012). About Us. BBY.com. Retrieved June 29, 2012, from <http://pr.bby.com/phoenix.zhtml?c=244152&p=irol-factSheet>Bickle, M. (2010). Best Buy is the Best Bet. Forbes. Retrieved June 29, 2012, from <http://www.forbes.com/sites/prospernow/2010/10/25/best-buy-is-the-best-bet-2/>Downes, L. (2012). Why Best Buy is Going Out of Business…Gradually. Forbes. Retrieved June 29, 2012, from <http://www.forbes.com/sites/larrydownes/2012/01/02/why-best-buy-is-going-out-of- business-gradually/2/>Nagy, B. (2012). Best Buy’s New Store Strategy. Word Press. Retrieved June 29, 2012, from <http://bryannagy.wordpress.com/2012/04/01/best-buys-new-store-strategy/>Souers, M. (2007). Why Best Buy is a Best Bet Business Week. Business Week. Retrieved June 29, 2012, from <http://www.businessweek.com/stories/2007-04-23/why-best-buy-is-a-best- betbusinessweek-business-news-stock-market-and-financial-advice>Stetler, M. (2011). How Much Does it Cost to Develop a Mobile App. AppMuse. Retrieved June 29, 2012, from <http://appmuse.com/appmusing/how-much-does-it-cost-to-develop-a-mobile-app/>The New York Times. (2010). Best BUY Company. The New York Times. Retrieved June 29, 2012, from <http://topics.nytimes.com/top/news/business/companies/best_buy_company/index.html>